Outline

Why this analysis is necessary??

• 74% cereal sales of us and our competitors have no ads and no promotions

  • good chance to increase awareness and revenue

What data we used?? (Sample of 21850 observations)

• Producers: General Mills, Kelloggs, Post
• Sale Revenue=(Price*Units)
• In Store Promotion
• Advertising Volume
• No bias [use the centrality of numeric data (Median Revenue)]

Recommendations

• Best Strategy: combining advertising and promotion together
• If promotion only(discount rate under 42%)
• If giving advertising only: small ads overall, or medium ads on toasted, small ads for cinnamon toast and regular flavor, no ads on cocoa

Best Strategy: Combining Promotion and Advertising

Alternative Strategy 1: Promotion only can increase revenue

Alternative Strategy 2: Advertising only can increase revenue